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    palmOne Reports Q2 FY05 Financial NumbersPosted By: Ryan on Wednesday, December 29, 2004 10:59:36 AM
palmOne, Inc. has reported revenue of $376.2 million for the second quarter of fiscal year 2005, ended Nov. 26, which is up approximately 39 percent from the $271.2 million reported during the comparable quarter a year ago.
Net income was $24.7 million, or $0.48 per diluted share. This compares to income from continuing operations in the year-ago period of $2.6 million, or $0.07 per diluted share.
"Our strategy is working, and this quarter's excellent growth in revenue and a more than tenfold increase in operating income from the year-ago quarter demonstrate we executed well," said Todd Bradley, palmOne chief executive officer. "Our fall products raised the bar for competitors and earned widespread acclaim. And we grew our handheld-computer market share domestically and abroad." Bradley noted the following financial highlights:
palmOne shipped approximately 1.6 million Zire, Tungsten and Treo family devices during its second fiscal quarter. Unit shipments to date total approximately 29 million.
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Article Comments
35 total comments The following comments are owned by whoever posted them. PIC is not responsible for them in any way. login or register for free in order to post comments.  Good news!RhinoSteve @ 12/29/2004 1:50:46 PM #
To those that shored PalmSource stock here and tried to create a selloff here by trashing the whole thing -- you are screwed!  RE: Good news!
Whoa. Assessing the impact of the Treo is hard to embrace. 50% of their device sales are now Treos. I hope the TE2 is some sort of transitional anomaly that bridges the gap to the OS6, OLED, VGA, 2x expansion, 2x wireless high end PDA. More likely P1 has ceded the high end datacentric device market to the PPC vendors in favor of the growth (survival) market. I hope I don't have to switch to the dark side for a high end PDA. Nevertheless, survival is the 1st order of biz, not pleasing psychotic enthusiasts like me. RE: Good news!
>>>Nevertheless, survival is the 1st order of biz, not pleasing psychotic enthusiasts like me.
Yeah, imagine them actually going after the core customers WHO MADE THEM and their fat paychecks and corporate looting possible! 
Wow.The_Voice_of_Reason @ 12/29/2004 1:24:43 PM #
Sleight of hand or a real turnaround? On the surface, this looks good, but a few nagging questions: 1) GAAP income = ??? 2) If the whisperings about Palm having an inventory glut are correct + if carriers have already bought all the Treos they'll be needing for the next few months, Palm may have traded a rosy Q2 report for a disastrous Q3 report. Only time will tell. 3) Besides the Treo lineup, Palm has little innovative hardware and has clearly lost momentum to PPC hardware manufacturers. While the $200 (the PDA "sweet spot") Tungsten E may sell well for now, Palm won't be able to keep fooling the masses with their anemic high end ($400) offerings. 4) Quality control issues. If the QC disaster isn't addressed, Palm will continue to see astronomical return rates (some Treo owners have had their Treos replaced between 5 and 10 times in less than a year due to manufacturing defects!). Who pays for defective hardware? We do.
****************************************************************** RE: Wow.
I am honestly surprised that Zire 31s are not selling in record numbers. It's arguably the "best" P1 model right now from a price-->performance ratio and is a newer model than the T|E. I see P1 consolidating all of their non-smartphone models to <$300 segments---basically, $100, $150, $200, $300 price points. Two Tungstens and two Zires, max. The T|E horse has been ridden and then flogged as long as is possible in this market (while still carrying the old Palm logo nonetheless!) and should be put out of its misery sooner than later. Same goes for the Zire 21. I have a feeling P1 has a glut of Treo 600s but if they are shrewd enough with discounting and offerng software updates to bring the 600's functionality up to at leat a level near the 650 e-mail and browser-wise, they can ride that one out. A glut of Treo 600s is still a better situation than a glut of ancient mono Vxs or m500s. I wouldn't be surprised to see them cap Treo 650 production earlier than ancticipated and put out a 'bugfix' model (T660?) with 64mb or 128mb ram and a few more minor tweaks. RE: Wow.The_Voice_of_Reason @ 12/29/2004 5:37:47 PM #
Palm needs no more than 3 PDAs and 2 smartphones. I think these Q2 figures are really just sleight of hand, though.
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palmOne has a lot of catching up to do
First, I would like to see palmOne fix their quality control problems. Us consumers have been plagued and incarcerated by buggy handhelds, handhelds that has unoptimized firmware, excessive defects in workmanship and materials. The Tungsten T was made out of metal casing and although the Tungsten T3 and Tungsten T5 somewhat has a metal feel, it felt mainly plastickey for 99% of the time. Excessive use of plastic is the cosmetic problem palmOne needs to fix, and also working endlessly to fix all the problems with the firmware is the firmware side of the problem. Ensuring that all hardware works flawlessly is something that palmOne needs to concentrate on, both on Hardware and Software, plus Firmware. Second, palmOne needs to start working with Third Party Software makers in order to ensure that the final version of the released product will be 100% compatible with the third party's products. I don't want another episode of Decuma On-Spot, where the software crashes just about every program on the book or another episode of the Bits N' Bolts, where they've been announcing a Handheld-level anomaly. Third, palmOne (though much to my opposition to use Hi Res Plus Screens on lower-end handhelds) needs to start using Hi-Res Plus Screens on NOT JUST the Tungsten T7 (upcoming), or just the high-end handhelds. IT'S ALL TUNGSTEN HANDHELDS that palmOne need to start using Hi-Res Plus screens. A Tungsten E2 with a Multi-Connector, 320x480 Hi-Res Plus Screen, and even 50MB useable volatile memory would be great for $200. For the next Tungsten Mid-Level Handheld, I would like to see the return of the Voice Memo, Vibrate on Alarm, and Dual-SDIO/SD/MMC Slots in addition to the Multi-Connector, and please no more NVFS. I'm getting sick and tired of NVFS because of this Flash Memory Controversy that has been running rampant since the announcement of the Tungsten T5 and Treo 650. Oh, all Tungstens need at least Bluetooth. For the Tungsten T7, Built-In Wi-Fi will kick butt. I no longer want to see a terrible-value palmOne handheld and I don't want to see palmOne make that same mistake with a "Built-In Drive" handheld without the vibrate and/or charge indicator (All Tungstens need Vibrate on Alarm and Charge Indicator). For the Tungsten C2, all the features of my proposed Tungsten T7 PLUS a 480x640 screen. For the Tungstens: Tungsten E: 320x480 Hi Res Plus with Active Input, IRDA and Bluetooth, Vibrate and Charge Indicators, Multi-Connector, 64MB (50 MB Useable) "Classic" Memory (NO MORE NVFS OK?), Motorola ARM-Compliant Processor (I'm sick and tired of all these Intel Processors being used) for $200. Tungsten T7: A fixed Tungsten T5 with 128MB (100 Useable) "Classic" Memory (Again NO MORE NVFS, NO MORE BUILT-IN THUMB DRIVES), Voice Memo, Vibrate, Charge Indicator, Housed in Metal, Multi-Connector, using a Yamaha Audio Processor, using an ATI Video Chip, Dual SD/SDIO/MMC Slots, and using a Motorola ARM-Compliant Processor with Bluetooth, IRDA, and Wi-Fi for $400. Tungsten W3: All the features of the Tungsten T7 with a "flippable" thumbboard, 480x640 VGA Screen. Like I said, ONLY CLASSIC memory NOT NVFS. No more Intel Processors please. $500. Tungsten D: New addition to the Tungsten Line. D will mean "Drive". This will be basically a Tungsten T5 with the addition of Vibrate and a Charge Indicator, plus double the memory (128MB System Memory, 384MB Drive Memory) and please a Metal Case and a Motorola Processor instead. $300, no more than that! Tungsten M: High-End Tungsten Handheld. M means "Multimedia". It will sport all the features of the Tungsten T7 with the addition of a 1.3MP Camera (Please let it be Kodak-quality), and a 480x640 screen. $650 to start. Please, all Tungstens MUST run under Palm OS Cobalt. No more Garnet, please. RE: palmOne has a lot of catching up to do
For the Zires: Zire 32: Much like yesterday's Tungsten E Handheld, but with a Multi-Connector instead, and please give the Zire 32 4 Shortcut Buttons and a 5-Way Navigator instead. Give it a Charge Indicator and even a Voice Memo, and price it $150, and you've got an already powerful Zire Handheld, but please use Motorola ARM Processors instead. No more Intel Processors, UGH! Zire 73: 64MB (50MB Useable for the least) Memory, all the same features with the Zire 72, but please make improvements on the Camera for the least, and please let us cover the camera lens when it's not in use. Thank you. Please add a 320x480 Hi Res Plus Screen with Active Input. Thank you. Multi-Connector and Vibrate is mandatory as well. $300 for the Multimedia Zire Handheld. Thank you. Zire 81: 128MB (At least 100MB Useable) Memory, rugged casing, all the features of the Zire 73 Handheld, but with Wi-Fi added-on, and with dual SD/SDIO/MMC Slots, and I would like to see 8 Shortcut Buttons on this high-end Zire Handheld, running at $400. Zire 91: Basically a Zire 81 with a 480x640 screen, a Kodak-made 2.0MP Built-In Camera, and with 256MB (I think at least 215MB Useable Memory should suffice) Memory (With all Zires, NO NVFS, if NVFS is being used, the Tungsten T5 is gonna be the final palmOne handheld I'll ever buy!). High-End Zire Handheld for $500. All Zires MUST run Palm OS Cobalt. No exceptions or excuses, or I'll start to go mad. RE: palmOne has a lot of catching up to do
One more thing I need to bring up--Please palmOne, please start using OLED Screens--they are not too expensive to use as it's cheap and potent. Even an OLED VGA 480x640 with Active Input and 262K Color will look great on a handheld. Powered by Palm OS since March 2002 RE: palmOne has a lot of catching up to doCaptain Hair @ 12/29/2004 4:29:08 PM #
Down vesther! pa1mOne, despite their rosy sales, can't support this many current new handhelds at one time. And, a few comments: >Tungsten E: 320x480 Hi Res Plus with Active Input, IRDA and Bluetooth, Vibrate and Charge Indicators, Multi-Connector, 64MB (50 MB Useable) "Classic" Memory (NO MORE NVFS OK?), Motorola ARM-Compliant Processor (I'm sick and tired of all these Intel Processors being used) for $200. I suppose you meant Tungsten E2. Additionally, pa1mOne is actively working to correct issues associated with NVFS (or so they say), so I expect that ALL of the future handhelds will use it. And what's wrong with Intel processors? >Tungsten T7: A fixed Tungsten T5 with 128MB (100 Useable) "Classic" Memory (Again NO MORE NVFS, NO MORE BUILT-IN THUMB DRIVES), Voice Memo, Vibrate, Charge Indicator, Housed in Metal, Multi-Connector, using a Yamaha Audio Processor, using an ATI Video Chip, Dual SD/SDIO/MMC Slots, and using a Motorola ARM-Compliant Processor with Bluetooth, IRDA, and Wi-Fi for $400. As much as I'd love this handheld (as long as it was thrown into a different case), pa1mOne can't afford to sell a device like this for $400 (Remember the TT?). They're a small company with hardly the power of HP and Dell to bargain for component prices. $500. >Tungsten W3: All the features of the Tungsten T7 with a "flippable" thumbboard, 480x640 VGA Screen. Like I said, ONLY CLASSIC memory NOT NVFS. No more Intel Processors please. $500. The Tungsten W died a LONG time ago. It'd most likely be the C2. Despite all the hoohaha about the VGA Pocket PCs, it really isn't neccessary on a Palm. I've also envisioned a 'flippable' thumboard (in fact, I've actually put much thought into it. I need a life...), but practically it's be incredibly prone to breakage and made the handheld excessively thick. What is it with you and Intel? Anyway, I can see pa1mOne never releasing a follow-up to the TC, as they are (1) focusing on the smartphone market, and (2) most likely going to release the T7 with wi-fi. >Tungsten D: New addition to the Tungsten Line. D will mean "Drive". This will be basically a Tungsten T5 with the addition of Vibrate and a Charge Indicator, plus double the memory (128MB System Memory, 384MB Drive Memory) and please a Metal Case and a Motorola Processor instead. $300, no more than that! Here's what this puppy's missing: integrated USB cable. Nobody will want a Palm/Flash Drive if it doesn't have the cable built in. Make it a little 6 inch retractable cable (and the handheld slightly thicker as a result), and you'll be set. Additionally, I think that NONE of these should look like the TE/T5. That design is worn out. >Tungsten M: High-End Tungsten Handheld. M means "Multimedia". It will sport all the features of the Tungsten T7 with the addition of a 1.3MP Camera (Please let it be Kodak-quality), and a 480x640 screen. $650 to start. Add flash to the camera, and for that much, make it a 2.3 megapixel. >Please, all Tungstens MUST run under Palm OS Cobalt. No more Garnet, please. For the Zires: >Zire 32: Much like yesterday's Tungsten E Handheld, but with a Multi-Connector instead, and please give the Zire 32 4 Shortcut Buttons and a 5-Way Navigator instead. Give it a Charge Indicator and even a Voice Memo, and price it $150, and you've got an already powerful Zire Handheld, but please use Motorola ARM Processors instead. No more Intel Processors, UGH! Again, you and the Intels. Geez, you don't have to put it on EVERY FREAKIN' ONE! [End rant] Sorry about that. Anyway, this is much to powerful for the basic Zire. 4 buttons and D-pad? Yes. Charge indicator? Yes. Voice memo? No. 320x320? Yes. Multi-Connector? Yes (should be on every one until they introduce a new one). >Zire 73: 64MB (50MB Useable for the least) Memory, all the same features with the Zire 72, but please make improvements on the Camera for the least, and please let us cover the camera lens when it's not in use. Thank you. Please add a 320x480 Hi Res Plus Screen with Active Input. Thank you. Multi-Connector and Vibrate is mandatory as well. $300 for the Multimedia Zire Handheld. Thank you. I can say with near certainty that this is the most likely successor to the 72. >Zire 81: 128MB (At least 100MB Useable) Memory, rugged casing, all the features of the Zire 73 Handheld, but with Wi-Fi added-on, and with dual SD/SDIO/MMC Slots, and I would like to see 8 Shortcut Buttons on this high-end Zire Handheld, running at $400. We're getting into too many Zires here. 8 buttons!?!? Have you lost your mind? Adhere to the KISS principle: Keep It Simple, Stupid. Additionally, this Zire, and the 81 you describe, are too similar to the Tungstens you've proposed. >Zire 91: Basically a Zire 81 with a 480x640 screen, a Kodak-made 2.0MP Built-In Camera, and with 256MB (I think at least 215MB Useable Memory should suffice) Memory (With all Zires, NO NVFS, if NVFS is being used, the Tungsten T5 is gonna be the final palmOne handheld I'll ever buy!). High-End Zire Handheld for $500. No no no. How many PDAs does Dell currently produce? 3. How many have VGA screens? 1. pa1mOne is in no financial position to put two VGA palms out their, let alone nine (look up) new handhelds in addition to their touted Treo 'family'. I'm not going to go into specifics here, but this is what I'd like to see... Zire 32: Zire 73: Tungsten E2: Tungsten T7: Treo 700: Treo 710: Treo 720: Treo 730: ALL HAVE: ACCESSORIES:
RE: palmOne has a lot of catching up to do
Everyone; These are nice lists and all but they are simply unfathomable for a small (and shrinking) company like P1 for support, marketing, and R&D purposes. All of the above lists fail to include any current carryover models and all seem more idealized "wish lists" moreso than a realistic product line given P1's current $ state and reluctance to innovate. I think that the Zire 31, 72 and T5 models will all carryover along with the two Treos. I do see a new flagship keyboard Tungsten model (likely with dual wireless) this spring as well as a proper T|E2 (likely just the T5 with 64mb regular ram and 320*320 screen). I wouldn't rule out a minor refresh of the Treo 650 either. Treo 600 will be sold as long as the carriers want it and until the considerable inventory of current units is exhausted. As a general rule of thumb, any and all units still carrying the old round Palm jewel logo will be EOL in the very near future. RE: palmOne has a lot of catching up to doCaptain Hair @ 12/30/2004 1:51:04 PM #
>Everyone; I presume that's me AND the people in my head. >These are nice lists and all but they are simply unfathomable for a small (and shrinking) company like P1 for support, marketing, and R&D purposes. All of the above lists fail to include any current carryover models and all seem more idealized "wish lists" moreso than a realistic product line given P1's current $ state and reluctance to innovate. Well, yes, this is a wish list, but not everything on here would be released at the same time: Timing would go as follows...
Yes, they will sell the Treo 600 until they're gone, as it still has profit potential. If pa1mOne really wants to focus on the smartphone market, they really have to release a <$250 Treo to capture the market. If they were to put one of those out, I can almost garauntee that they wouldn't be able to keep up with the demand. >As a general rule of thumb, any and all units still carrying the old round Palm jewel logo will be EOL in the very near future. Agreed. RE: palmOne has a lot of catching up to do
Captain; Not only does the proposed release schedule not fit P1's release schedule, it doesn't fit the release schedule of any 2nd or 3rd tier hardware company of P1's size. You have to take into account things like those little pamphlets Office Depot & Staples have for point of sale consumer education. You wouldn't have to replace those booklets every other month, would you? It is better to group releases into clusters like P1 currently does. That said, 2x a year is too infrequent in this day and age. The launch of the Tungsten T2 was perfect (July-Aug) as it allowed them to get the back to school crowd and ramp up everyone's expectations prior to the T3 launch in Oct/Nov. I would realistically recommend they stick to the spring/fall launch schedule but also add a 3rd launch window in mid-summer for Treos and "refreshes" of current products (like T|T->T|T2). A mid-summer launch of a low cost Treo would absolutely be killer for parents buying their kids a phone for college etc. RE: palmOne has a lot of catching up to doCaptain Hair @ 12/30/2004 3:33:08 PM #
Yeah, I know I'm unrealistic, but that's my job here. >A mid-summer launch of a low cost Treo would absolutely be killer for parents buying their kids a phone for college etc. RE: palmOne has a lot of catching up to do
You folks have way too much time on your hands. Either that or can type really fast. RE: palmOne has a lot of catching up to do
Captain Hair:
The reason why I wanted palmOne to start using Motorola iMXL processors instead of Intel X-Scale Processors was mainly due to each hardware manufacturer having to add cost for the Intel Name. We consumers shouldn't have to pay any unnecessary hardware processor costs for a particular handheld. In fact, yesterday's handhelds (i.e. Palm M515) ran under Motorola Processors, so why shouldn't today's palmOne's handhelds do so? Imagine yourself in a Handheld Manufacturer's shoes. You had to choose between a Motorola iMXL Processor (or any other Motorola ARM-Compliant Processor) or an Intel X-Scale Processor. Wouldn't you do research on these two processors first before making conclusions?
It's too late for Palm
"Death can come swiftly to a market leader. By the time you have lost the positive-feedback cycle it's often too late to change what you've been doing, and all of the elements of a negative spiral come into play." - Bill Gates, "The Road Ahead", Chapter 3 RE: It's too late for PalmCaptain Hair @ 12/29/2004 5:27:07 PM #
You don't need ot keep posting that quote. "People who think they're smart annoy those of us who are." RE: It's too late for Palm
Oh yea? Where did Bill copy that from. (because he sure hasn't had an original thought of his own) --- David RE: It's too late for Palm
Hah! You really think GATES wrote any of that book? Try his unnamed ghost writer! RE: It's too late for PalmCaptain Hair @ 12/30/2004 4:04:53 PM #
Either way, I'm tired of reading that quote every time there's a rosy sales forcast or a decent earnings report. Sheesh.
"People who think they're smart annoy those of us who are."
Is Bradley insane or just out of touch?
He said: "Our strategy is working..." Which one is this?! Outsource to crappy manufacturers and alienate your core long-time customers by ignoring their desires? And being, uh, clever enough to put out **32K Memos and a 1K Clipboard**? "Our fall products raised the bar for competitors and earned widespread acclaim." OK, clearly the man is insane... p1 is scroooooed. RE: Is Bradley insane or just out of touch?Captain Hair @ 12/29/2004 5:27:39 PM #
I agree, he's nuts. "People who think they're smart annoy those of us who are." RE: Is Bradley insane or just out of touch?The_Voice_of_Reason @ 12/29/2004 5:34:31 PM #
Yeah, he's crazy. Like a fox. http://biz.yahoo.com/t/06/4674.html ****************************************************************** RE: Is Bradley insane or just out of touch?
I won't have you insulting animals here. However, if you meant Fox -- as in Murdoch -- then I might agree. Pander to the moron demographic... How golden is *his* parachute, I wonder? RE: Is Bradley insane or just out of touch?
palmOne, if they select to continue their evil outsourcing plans, need to start outsourcing to entities that will produce high-quality output. In the last couple of months, we were treated to crappy build quality and excessively unoptimized system code within firmware.
Seriously, palmOne needs some quality control counseling and therapy.
Ahem - what goes around comes around?SeldomVisitor @ 12/29/2004 6:31:10 PM #
Is there a reason this was posted a full month after those financial results were reported as if it is a new story (complete with boldface added to some words! HA HA HA!)? Giggle. I think someone must own some PLMO stock... RE: Ahem - what goes around comes around?Captain Hair @ 12/30/2004 1:46:36 PM #
ONE: Q2 FY05 ended on November 26. That's not the day this information was released.
TWO: 29 Million is a lot of handhelds for a little company like pa1mOne. THREE: What on Earth does your title have to do with the post? "People who think they're smart annoy those of us who are."
RE: There will be no more Palm Tungsten devices.
WTF????? Insider info? or just mere sleuthin' speculation? ;-) Ok so NOW the teeming masses @ PIC are awaiting: 1. TVoR's PalmSource/Cobalt tell-all article 2. Sleuth's P1 roadmap leaks 3. Mike Cane's T|E review !! RE: There will be no more Palm Tungsten devices.
my opinion entirely. No sources other than what seems obvious to me. RE: There will be no more Palm Tungsten devices.Captain Hair @ 12/30/2004 4:06:50 PM #
They may not be called Tungstens, but pa1mOne will continue to produce standalone PDAs. Maybe, just maybe, it'll be the coming of the Veld. Bwahahahahahahaa! "People who think they're smart annoy those of us who are." RE: There will be no more Palm Tungsten devices.Foo Fighter @ 12/30/2004 4:41:17 PM #
No way is PalmOne abandoning the PDA business yet. Their financials are too dependant on them. If they did jump ship, they would instantly eliminate half their revenues, which would be a suicidal business strategy. Nope, their going to continue to make PDAs only until the bottom drops out of the market...and that hasn't happened yet, and won't for quite a while at least. ------------------------------- Editor, http://Pocketfactory.com Contributing Editor, http://digitalmediathoughts.com RE: There will be no more Palm Tungsten devices.
I said there will be no more Palm Tungsten devices. Simply that. What I'm implying, of course, is that P1 is out of the high-end PDA market. No money in it. Their profits are coming from Treo's and the lower powered TE. I would expect a re-branding event to come soon.
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